Loma Linda University

“Executive leadership is employed by loma linda university health (lluh), a related 501(c)(3) organization. Lluh is the sole member of loma linda university.”

“Lluh is the sole member of llu.”

“Lluh as the sole member maintains certain reserved powers, including the power to appoint or remove trustees.”

“The powers reserved by lluh as member, which may only be exercised by the lluh board upon the affirmative vote of two-thirds of the trustees present and voting at any regular or special meeting of the board at which a quorum is present are to: 1. Approve or ratify all changes to the articles of incorporation and bylaws of llu, as corporate member. 2. Appoint the board for llu as the member. 3. Approve any significant change in the corporate purposes of llu. The powers reserved by lluh as member, which shall only be exercised by the lluh board upon majority vote of lluh's trustees present and voting at a regular or special meeting whenever a quorum is present, are to: 1. Remove from office any trustee of llu with or without cause. 2. Appoint the executive vice president for university affairs who shall ordinarily serve as the chancellor. 3. Approve any merger, consolidation, dissolution, sale, or transfer of more than ten million dollars of the assets of llu. 4. Require llu to have a policy for borrowing funds that is congruent with the lluh board-approved policy on borrowing. 5. Approve all borrowing of five million dollars or more by llu or its subsidiaries (see board-approved policy for borrowing of funds). 6. Approve any exceptions to the policy for the borrowing of funds by llu. 7. Approve the strategic plan of llu. 8. Approve major construction projects of llu. 9. Approve institutes and corporations subsidiary of llu. 10. Accept the annual audited financial statements of llu. 11. Approve the annual operating and capital budgets of llu. 12. Approve the llu contracting guidelines. 13. Approve recommendations from llu and its subsidiaries for business development plans and activities. 14. Require llu to have a compliance program.”

“The form 990 is reviewed by internal audit, management, the audit committee and board of trustees for review and comments prior to filing.”

“General counsel annually obtains statement of disclosure from trustees, officers, administrators, key employees, and others who make or affect significant decisions and reviews the findings with appropriate boards and committees. The board of trustees makes the decisions regarding questions which have not been satisfactorily answered after administrative consideration. The general conference auditing department annually audits compliance with this policy.”

“The filing organization does not determine compensation for the organization's president. Compensation is set by a related organization, therefore question 15a is "no" in accordance with the form instructions. Lluh, llu's parent organization, employs an independent outside consulting firm to benchmark compensation for lluh employees, including the ceo and top management. Lluh provides management services for llu. The lluh executive compensation committee uses the results of the independent survey to establish pay scales for the next fiscal year. The executive compensation committee sets the total compensation below the industry mean and median amounts provided in the survey. The executive compensation committee is composed of trustees appointed by the lluh board who are independent of lluh's management. The executive compensation committee is appointed by the lluh board of trustees to have direct responsibility for establishing compensation, policies, and benefits for the senior executives of lluh. The committee's process includes contemporaneous substantiation of deliberations and decisions. For key employees other than the officers as well as employees in leadership positions, llu management, through the human resource department, obtains the services of an independent consulting firm to conduct nationwide compensation surveys. Management uses the comparable benchmarks in the survey results to establish or review pay scales for the position. This survey, conducted by the independent consulting firm, is performed for the organization every two years. Internally, the human resource department conducts annual surveys using at least three survey results rom independent firms to establish or review the reasonableness of compensation amounts. This process was last undertaken in december of 2017 for the position of provost/coo, llu held by carter, ronald. This process was last undertaken in december of 2017 for the position of evp lluh, ceo uhs, dean school of medicine held by hadley, henry roger. This process was last undertaken in december of 2017 for the position of vp/cio, llu held by harris, david paul. This process was last undertaken in december of 2017 for the position of president, lluh held by hart, richard henry. This process was last undertaken in december of 2017 for the position of evp, finance & administration, lluh formerly held by lang, kevin j. This process was last undertaken in december of 2017 for the position of svp, administration/ cfo llu held by neal, rodney. This process was last undertaken in december of 2017 for the position of vp, student services, llu held by williams, ricky eugene. This process was last undertaken in october of 2018 for the position of vice president for research held by samardzija, michael. This process was last undertaken in december of 2017 for the position of vp finance held by mowery, jr, llewellyn l. This process was undertaken for the remaining officer's not listed in december of 2017.”

“Llu will make its governing documents and conflict of interest policy available to the public upon request. The conflict of interest policy is also posted on the organization's internal website for employees. Audited financial statements are made available to the public upon request and are available on its website. Form 990, part vii, line 1a: for employees of lluahsc or lluahsc affiliates (organization(s)) related to the filing organization who devote less than full-time to the filing organization (based upon the average number of hours per week shown in part vii, section a, column (b) of the return) the compensation amounts shown in columns (e) and (f) were provided in conjunction with their responsibilities and roles in other positions for organizations related to the filing organization. These individuals each devote approximately 50 hours per week serving in their respective positions within the organization.”

“Purchased services: program service expenses 14,527,727. Management and general expenses 17,826,503. Fundraising expenses 759,945. Total expenses 33,114,175. Consulting and management fees: program service expenses 2,389,924. Management and general expenses 271,154. Fundraising expenses 0. Total expenses 2,661,078. Training and education: program service expenses 1,768,045. Management and general expenses 39,846. Fundraising expenses 0. Total expenses 1,807,891. Mgmt service contracts: program service expenses 1,620,640. Management and general expenses 30,524. Fundraising expenses 0. Total expenses 1,651,164.”

“Unrelated business income from partnerships 3,144,324. Prior period adjustment-audit related -3,960,365.”